BUSE Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. As for BUSE, the dividend discount model StockNews created for the company implies a positive return of 0.07%. Digging deeper, the aspects of First Busey Corp's dividend discount model that we found most interesting were:

• Relative to all dividend yielding stocks in our set, BUSE offers a dividend yield in the top 22.75% of stocks in our set.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, the expected return of 0.07%, based on the stock's current share price and target price based on a dividend discount model, is greater than 67.72% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, First Busey Corp bears a discount rate, according to our calculations, lower than 67.72% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Based on dividend growth rate, BUSE boasts a higher growth rate in terms of its annual cash distributed to its owners than 71.73% of the dividend issuers in our set.

BUSE Dividends vs. Peers